Dakota Company experienced the following events during Year 2: 1. Acquired $20,000 cash from the issue...

 

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Dakota Company experienced the following events during Year 2: 1. Acquired $20,000 cash from the issue of common stock. 2. Paid $22,500 cash to purchase land. 3. Borrowed $8,000 cash. 4. Provided services for $30,000 cash. 5. Paid $2,000 cash for utilities expense. 6. Paid $20,000 cash for other operating expenses. 7. Paid a $1,000 cash dividend to the stockholders. 8. Determined that the market value of the land purchased in Event 2 is now $25,000. Required: a. The January 1, Year 2, account balances are shown in the following accounting equation. Record the eight events in the appropriate accounts under an accounting equation. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. The first event is shown as an example. b-1. Prepare an income statement for the Year 2 accounting period. b-2. Prepare a statement of changes in equity for the Year 2 accounting period. b-3. Prepare a year-end balance sheet for the Year 2 accounting period. b-4. Prepare a statement of cash flows for the Year 2 accounting period. c-1. Determine the percentage of assets that were provided by retained earnings. c-2. Does the retained earning balance reflect the amount of cash that the company has available to pay dividends? d. Based on the December 31, Year 2, balance sheet, what is the largest cash dividend Dakota could pay? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 r.1 Darrantana nf accate Req B3 Req B4 Req C and D c-1. Determine the percentage of assets that were provided by retained earnings. Note: Round your answer to 1 decimal place (i.e., 0.234 should be entered as 23.4). c-2. Does the retained earning balance reflect the amount of cash that the company has available to pay dividends? d. Based on the December 31, Year 2, balance sheet, what is the largest cash dividend Dakota could pay? 2 Show less A complete this question by entering your answers in the taps below. Req A Event Balance 1/1/Year 2 1. 2. 3. 4. 5. 6. 7. 8. Totals Req B1 Req B2 Cash The January 1, Year 2, account balances are shown in the following accounting equation. Record the eight events in the appropriate accounts under an accounting equation. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. The first event is shown as an example. Note: Enter any decreases to account balances with a minus sign. Not all cells require input. Assets + 10,000+ 20,000 + + + + + + Reg B3 30,000 + Land 22,500 = DAKOTA COMPANY Accounting Equation for Year 2 Liabilities + Notes Payable = = Req B4 = Req C and D 22,500 = + 0 + + + + + + + 0 + < Req A Stockholders' Equity Common Stock 15,000 + 20,000 + + + + + + + + 35,000 + Retained Earnings 17,500 17,500 Req B1 > Check my work Account Titles for Retained Earnings Show less Provide the appropriate titles for these accounts in the last column of the table. The first event is shown as an example. b-1. Prepare an income statement for the Year 2 accounting period. b-2. Prepare a statement of changes in equity for the Year 2 accounting period. b-3. Prepare a year-end balance sheet for the Year 2 accounting period. b-4. Prepare a statement of cash flows for the Year 2 accounting period. c-1. Determine the percentage of assets that were provided by retained earnings. c-2. Does the retained earning balance reflect the amount of cash that the company has available to pay dividends? d. Based on the December 31, Year 2, balance sheet, what is the largest cash dividend Dakota could pay? Complete this question by entering your answers in the tabs below. Reg A Req B1 Beginning common stock Req B2 DAKOTA COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Ending common stock Beginning retained earnings Req B3 Prepare a statement of changes in equity for the Year 2 accounting period. Ending retained earnings Total stockholders' equity Req B4 < Req B1 $ Req C and D $ 0 0 0 Req B3 > Complete this question by entering your answers in the tabs below. Req A Assets Req B1 Total assets Liabilities Req B2 Prepare a year-end balance sheet for the Year 2 accounting period. Total liabilities Stockholders' Equity Req B3 DAKOTA COMPANY Balance Sheet As of December 31, Year 2 Total stockholders' equity Total liabilities and stockholders' equity Req B4 < Req B2 $ $ $ Req C and D 0 0 0 0 Req B4 > Req A Req B1 Req B2 Cash flows from operating activities: Prepare statement of cash flows for the Year 2 accounting period. Note: Amounts to be deducted should be indicated with a minus sign. Net cash flow from operating activities Cash flows from investing activities: DAKOTA COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Net cash flow from investing activities Cash flows from financing activities: Ending cash balance Req B3 Net cash flow from financing activities Req B4 < Req B3 Req C and D $ Req C and D > 0 0 0 0 d. Based on the December 31, Year 2, balance sheet, what is the largest cash dividend Dakota could pay? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 c-1. Percentage of assets c-2. Does the retained earning balance reflect the cash for dividends? d. Cash dividend Req B4 c-1. Determine the percentage of assets that were provided by retained earnings. Note: Round your answer to 1 decimal place (i.e., 0.234 should be entered as 23.4). c-2. Does the retained earning balance reflect the amount of cash that the company has available to pay dividends? d. Based on the December 31, Year 2, balance sheet, what the largest cash dividend Dakota could pay? < Req B4 Req C and D % Req C and D > Show less Dakota Company experienced the following events during Year 2: 1. Acquired $20,000 cash from the issue of common stock. 2. Paid $22,500 cash to purchase land. 3. Borrowed $8,000 cash. 4. Provided services for $30,000 cash. 5. Paid $2,000 cash for utilities expense. 6. Paid $20,000 cash for other operating expenses. 7. Paid a $1,000 cash dividend to the stockholders. 8. Determined that the market value of the land purchased in Event 2 is now $25,000. Required: a. The January 1, Year 2, account balances are shown in the following accounting equation. Record the eight events in the appropriate accounts under an accounting equation. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. The first event is shown as an example. b-1. Prepare an income statement for the Year 2 accounting period. b-2. Prepare a statement of changes in equity for the Year 2 accounting period. b-3. Prepare a year-end balance sheet for the Year 2 accounting period. b-4. Prepare a statement of cash flows for the Year 2 accounting period. c-1. Determine the percentage of assets that were provided by retained earnings. c-2. Does the retained earning balance reflect the amount of cash that the company has available to pay dividends? d. Based on the December 31, Year 2, balance sheet, what is the largest cash dividend Dakota could pay? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 r.1 Darrantana nf accate Req B3 Req B4 Req C and D c-1. Determine the percentage of assets that were provided by retained earnings. Note: Round your answer to 1 decimal place (i.e., 0.234 should be entered as 23.4). c-2. Does the retained earning balance reflect the amount of cash that the company has available to pay dividends? d. Based on the December 31, Year 2, balance sheet, what is the largest cash dividend Dakota could pay? 2 Show less A complete this question by entering your answers in the taps below. Req A Event Balance 1/1/Year 2 1. 2. 3. 4. 5. 6. 7. 8. Totals Req B1 Req B2 Cash The January 1, Year 2, account balances are shown in the following accounting equation. Record the eight events in the appropriate accounts under an accounting equation. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. The first event is shown as an example. Note: Enter any decreases to account balances with a minus sign. Not all cells require input. Assets + 10,000+ 20,000 + + + + + + Reg B3 30,000 + Land 22,500 = DAKOTA COMPANY Accounting Equation for Year 2 Liabilities + Notes Payable = = Req B4 = Req C and D 22,500 = + 0 + + + + + + + 0 + < Req A Stockholders' Equity Common Stock 15,000 + 20,000 + + + + + + + + 35,000 + Retained Earnings 17,500 17,500 Req B1 > Check my work Account Titles for Retained Earnings Show less Provide the appropriate titles for these accounts in the last column of the table. The first event is shown as an example. b-1. Prepare an income statement for the Year 2 accounting period. b-2. Prepare a statement of changes in equity for the Year 2 accounting period. b-3. Prepare a year-end balance sheet for the Year 2 accounting period. b-4. Prepare a statement of cash flows for the Year 2 accounting period. c-1. Determine the percentage of assets that were provided by retained earnings. c-2. Does the retained earning balance reflect the amount of cash that the company has available to pay dividends? d. Based on the December 31, Year 2, balance sheet, what is the largest cash dividend Dakota could pay? Complete this question by entering your answers in the tabs below. Reg A Req B1 Beginning common stock Req B2 DAKOTA COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Ending common stock Beginning retained earnings Req B3 Prepare a statement of changes in equity for the Year 2 accounting period. Ending retained earnings Total stockholders' equity Req B4 < Req B1 $ Req C and D $ 0 0 0 Req B3 > Complete this question by entering your answers in the tabs below. Req A Assets Req B1 Total assets Liabilities Req B2 Prepare a year-end balance sheet for the Year 2 accounting period. Total liabilities Stockholders' Equity Req B3 DAKOTA COMPANY Balance Sheet As of December 31, Year 2 Total stockholders' equity Total liabilities and stockholders' equity Req B4 < Req B2 $ $ $ Req C and D 0 0 0 0 Req B4 > Req A Req B1 Req B2 Cash flows from operating activities: Prepare statement of cash flows for the Year 2 accounting period. Note: Amounts to be deducted should be indicated with a minus sign. Net cash flow from operating activities Cash flows from investing activities: DAKOTA COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Net cash flow from investing activities Cash flows from financing activities: Ending cash balance Req B3 Net cash flow from financing activities Req B4 < Req B3 Req C and D $ Req C and D > 0 0 0 0 d. Based on the December 31, Year 2, balance sheet, what is the largest cash dividend Dakota could pay? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 c-1. Percentage of assets c-2. Does the retained earning balance reflect the cash for dividends? d. Cash dividend Req B4 c-1. Determine the percentage of assets that were provided by retained earnings. Note: Round your answer to 1 decimal place (i.e., 0.234 should be entered as 23.4). c-2. Does the retained earning balance reflect the amount of cash that the company has available to pay dividends? d. Based on the December 31, Year 2, balance sheet, what the largest cash dividend Dakota could pay? < Req B4 Req C and D % Req C and D > Show less